BRITANNIA INDUSTRIES TO CLOSE ITS HISTORIC BISCUIT UNIT AT TARATALA FACTORY: HERE'S WHAT WE KNOW SO FAR

Britannia Industries, one of India's leading biscuit manufacturers, has announced the closure of its Taratala factory in Kolkata. Established in 1947, this factory is the second oldest of Britannia's facilities in India, after the one in Mumbai.

Britannia Industries Informed via Exchange Filing

The company has informed the stock exchanges that all workers at the Taratala factory have accepted voluntary retirement schemes (VRS).

What Britannia Said?

In a statement, Britannia said, "A voluntary retirement scheme offered by the company to the workers at its factory situated at Taratala, Kolkata, West Bengal, has been accepted by all the permanent workers of the aforementioned factory of the company."

Will It Have Impact On Business Operations?

The company has assured that the VRS will not have a significant impact on its business operations.

What Are The Reasons Behind VRS To Employees?

Britannia has not disclosed the reasons behind offering VRS to the employees.

Previous Closing Of Britannia's Older Factories

This closure follows the shutdown of Britannia's older factories in Mumbai and Chennai.

About Taratala Factory

The Taratala factory, located on 11 acres of leasehold land belonging to Kolkata Port, had its lease renewed in 2018 for a period of 30 years, until 2048. Sources suggest that the factory's operations were no longer economically viable due to its age.

What Britannia Is Planning?

Britannia is focusing on shutting down older, less efficient factories near city centers and building modern facilities with higher production capacities.

Lease Agreement Available

The future use of the Taratala land remains uncertain, as Britannia still has 24 years left on the lease, according to a port trust source.

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What Operations Were at Taratala Factory?

The Taratala factory has been a key hub for manufacturing, planning, logistics, and sales operations in the eastern region.

Investment In 2018

In 2018, Britannia Chairman Nusli Wadia announced plans to invest Rs 300-350 crore in a new facility in Bengal, marking the company's first major investment in the state in a long time.

Contract Manufacturing Unit

Besides the Taratala factory, Britannia operates a contract manufacturing unit near Dankuni. Bengal is a crucial market for Britannia, being the company's third-largest, with over Rs 900 crore in revenue generated from the state.

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2024-06-24T10:59:20Z dg43tfdfdgfd